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JAMB Economics 1981 Question 50

Question 50

Public Finance

Progressive income tax can be expressed as

  1. A.tax that falls as income rises
  2. B.tax that rises as income falls
  3. C.tax that is independent of income
  4. D.tax that rises as income rises
  5. E.tax that is neutral to income.
Show the answer and explanation

Answer: D (tax that rises as income rises)

Explanation

A progressive tax takes a bigger share of income as income rises.